Cenovus Energy Inc (NYSE:CVE) Plans C$0.22 Quarterly Dividend

Key Points

• Cenovus Energy declared a C$0.22 quarterly dividend, payable September 29 to shareholders of record on September 15. The annualized dividend is approximately C$0.63 per share, representing a 3.0% yield.
• The dividend appears well covered, with a 60.0% current payout ratio and an expected future payout ratio of 23.5%; the company has increased its dividend for four consecutive years.
• Cenovus shares rose 5.1% to $29.07, while the company’s latest quarterly results beat expectations with EPS of $0.61 versus the $0.56 consensus estimate and revenue of $10.79 billion.

Cenovus Energy Inc (NYSE:CVE - Get Free Report) TSE: CVE announced a quarterly dividend on Wednesday, July 29th. Stockholders of record on Tuesday, September 15th will be given a dividend of 0.22 per share by the oil and gas company on Tuesday, September 29th. This represents a c) dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Tuesday, September 15th.

Cenovus Energy has raised its dividend payment by an average of 0.6%per year over the last three years and has raised its dividend every year for the last 4 years. Cenovus Energy has a dividend payout ratio of 60.0% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Cenovus Energy to earn $2.68 per share next year, which means the company should continue to be able to cover its $0.63 annual dividend with an expected future payout ratio of 23.5%.

Cenovus Energy Trading Up 5.1%

Shares of CVE traded up $1.41 during trading hours on Wednesday, hitting $29.07. The stock had a trading volume of 10,373,574 shares, compared to its average volume of 11,552,229. Cenovus Energy has a 12-month low of $14.48 and a 12-month high of $32.07. The firm has a market cap of $54.08 billion, a P/E ratio of 15.97 and a beta of 0.34. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.00 and a current ratio of 1.57. The company's fifty day simple moving average is $27.31 and its 200 day simple moving average is $24.99.

Cenovus Energy (NYSE:CVE - Get Free Report) TSE: CVE last posted its quarterly earnings results on Wednesday, May 6th. The oil and gas company reported $0.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.56 by $0.05. The firm had revenue of $10.79 billion during the quarter, compared to the consensus estimate of $9.47 billion. Cenovus Energy had a return on equity of 15.29% and a net margin of 9.53%.The firm's quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.47 earnings per share. Equities research analysts forecast that Cenovus Energy will post 3.02 EPS for the current fiscal year.

Hedge Funds Weigh In On Cenovus Energy

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Capital Research Global Investors grew its position in Cenovus Energy by 16.6% in the fourth quarter. Capital Research Global Investors now owns 124,313,513 shares of the oil and gas company's stock valued at $2,103,090,000 after acquiring an additional 17,730,542 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of Cenovus Energy by 12.8% during the fourth quarter. Vanguard Group Inc. now owns 63,525,477 shares of the oil and gas company's stock worth $1,074,660,000 after purchasing an additional 7,197,843 shares in the last quarter. Capital International Investors boosted its stake in shares of Cenovus Energy by 3.9% in the fourth quarter. Capital International Investors now owns 50,979,140 shares of the oil and gas company's stock valued at $862,505,000 after purchasing an additional 1,903,432 shares during the period. FIL Ltd boosted its stake in shares of Cenovus Energy by 40.0% in the fourth quarter. FIL Ltd now owns 38,533,059 shares of the oil and gas company's stock valued at $651,880,000 after purchasing an additional 11,019,212 shares during the period. Finally, Bank of America Corp DE grew its holdings in Cenovus Energy by 111.2% during the 1st quarter. Bank of America Corp DE now owns 22,770,723 shares of the oil and gas company's stock valued at $604,107,000 after purchasing an additional 11,990,405 shares in the last quarter. 51.19% of the stock is owned by institutional investors and hedge funds.

About Cenovus Energy

Cenovus Energy Inc is a Canadian integrated energy company engaged in the exploration, development and production of crude oil, natural gas liquids and natural gas, together with downstream refining and marketing activities. Headquartered in Calgary, Alberta, Cenovus operates a mix of oil sands thermal and dilbit assets, conventional oil and gas properties, and owns refining and midstream assets designed to move and process hydrocarbons into finished petroleum products for commercial markets.

The company was originally formed as a spin‑off from Encana Corporation in 2009 and has grown through organic development and strategic acquisitions.

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